Ferrovial N.v. · BME:FER
Ferrovial — H1 2014 Earnings Presentation
47 slides from Ferrovial's earnings presentation, June 2014
Slide 1: Investing for growth
1H 2014 Investing for growth ferrovial 1 2014 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 2: Disclaimer
Disclaimer This document may contain statements that constitute forward looking statements about the Company. These statements are based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regardin
Slide 3: Agenda
Agenda Group overview Looking Ahead Appendix 2014 – First Half results Introduction to 407ETR Toll road Managed Lanes Toll roads 2013 – Full year results 3 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 4: Ferrovial Business Overview
Ferrovial Business Overview 2013 figures Leading European airport operator € 219mn Dividends from Airports INFRASTRUCTURE Ownership and manager of 4 UK airports, including Heathrow PROJECTS Leading sponsor of tollroads € 242mn Ring fenced debt infrastructure development worldwide Key developer of ET
Slide 5: Debt Overview
Debt Overview 1H ‘14 Net debt evolution ex-infra projects EX PROJECTS – INFRA PROJECTS €mn 1,484 1,663 1.599 907 31 NET CASH €1,599mn 1,547 1,172 1,987 3,064 2006 2007 2008 2009 2010 2011 2012 2013 1H14 1H ‘14 PROJECTS Debt allocated at project level €mn Projects under development not generating EBI
Slide 6: No meaningful maturities until 2018
No meaningful maturities until 2018 Financial position (ex-infra projects) 2014-2019 maturities € million - June ‘14 501 510 44 42 19 11 5 2014 2015 2016 2017 2018 2019 >2019 Liquidity position € million - June ‘14 986 3.752 2.767 Total cash Undrawn lines Total liquidity 6 E-mail: [email protected] –
Slide 7: 2014 Overview (up to June)
2014 Overview (up to June) Group Services largest division by revenues, EBITDA and OCF Highest ever backlog, €26bn (Construction & Services) Operations Volume and profitability expansion (Services) Traffic growth across the portfolio Credit rating upgrade by Fitch (from BBB- to BBB) Financial 10y co
Slide 8: Spain 2014
Spain 2014 … Better traffic Traffic Ausol I 4,2% -17,6% -9,8% 1H'13 FY 2013 1H'14 … Better collections Days of sales outstanding 201 211 (Services) 146 120 113 2010 2011 2012 2013 1H 2014 … Higher volumes Waste Tons 6,6% (Services) -16,2% -6,6% 1H'14 1H'13 1H'12 … Higher public bidding public biddin
Slide 9: Agenda
Agenda Group overview Looking Ahead Appendix 2014 – First Half results Introduction to 407ETR Toll road Managed Lanes Toll roads 2013 – Full year results 9 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 10: Capital allocation. Strong financial discipline
Capital allocation. Strong financial discipline Low level Asset rotation Financially of corporate to support debt growth Operationally Efficient Operational asset value allocation generation 10 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 11: Shareholder remuneration
Shareholder remuneration Dividend 2013 (Euros/share) Interim (paid Dec’13) 0.40 FER Flexible Dividend 0.291 TOTAL 0.691 Dividend evolution 1.25 0.691 0.40 0.42 0.45 2009 2010 2011 2012 2013 11 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 12: Why Ferrovial?
Why Ferrovial? High Quality Strong Assets Backlog Dividend generation Highest ever Operating cash flow* Solid Financial diversification Position 34% 22% 17% Net cash position (2018 & 2021 main maturities) 13% 14% *2013 OCF ex-infrastructure projects 12 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 13: Thanks
Thanks 13 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 14: Agenda
Agenda Group overview Looking Ahead Appendix 2014 – First Half results Introduction to 407ETR Toll road Managed Lanes Toll roads 2013 – Full year results 14 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 15: Record Backlog (Construction & Services)
Record Backlog (Construction & Services) Backlog growth Construction €26.1bn (38 months of activity) 26.1 29% +78% 71% Domestic 14.7 18.8 International Services Construction 7.2 (€ bn) Services 7.5 7.3 2005 1H2014 34% International 66% Domestic 38% 68% International 15 E-mail: [email protected] – Tel:
Slide 16: Toll roads
Toll roads Traffic evolution Traffic growth across our portfolio 1H 2014 ∆% L-f-L 1H 2Q Solid growth in US, Canada and Europe (Ireland, Portugal and Spain) Ausol* (Spain) +1.8% +4.2% Algarve (Portugal) +11.2% +14.6% Very active pipeline Bidding in US/ Australia/Canada and selective M4 (Ireland) +4.4
Slide 17: 407ETR (Equity method, Ferrovial stake: 43%)
407ETR (Equity method, FERROVIAL stake: 43%) 407ETR Traffic and EBITDA above expectations CAD million ∆% LfL 1H2014 414 +11.3% No relevant maturities until 2015 Revenues EBITDA 345 +10.0% 30y bond issuance CAD250mn in May EBITDA % 83.5% -110bps 2014 (3.35% coupon) Net debt 5,759 +8.76% Increasing di
Slide 18: Services
Services Services € million Largest division in the group 1H2014 ∆% LfL Revenues 2,125 +25.7% Strong revenue growth in Spain & UK EBITDA 158 +11.6% (combined organic growth +8.6%) EBITDA % 7.5% -80 bps Backlog 18,841 +3.6 % Enterprise integration on track Synergies 2015 (e) £40mn Volume and profitab
Slide 19: Amey - profitable growth
Amey -profitable growth Proven organic growth 2013: Enterprise synergies on track £ billion Amey Sales £ million 35 40 CAGR: 9.7% Synergies 7 1.2 0.7 Net -9 +16 +40 19 16 2007 2012 Costs 2013 2014 (e) 2015 (e) UK Services market is growing Backlog: anticipating future growth Amey/Enterprise active b
Slide 20: Spain: resilient operations & financial performance
Spain: resilient operations & financial performance Sales 100% EBITDA / Cash flow conversion € billion € billion Acumulative 2007 - 2013 Stability 1.39 1.42 1.33 1.37 2007 2013 EBITDA OCF Local government operating spend Backlog: Anticipating future growth € billion € billion 34.2 6.3 24.7 5.2 -28%
Slide 21: Construction
Construction Operating Cash Flow No global or volume ambitions € million 1H 2013 1H 2014 Competitive tool for infrastructure -41 projects -191 Backlog by geography 2014 (H1): 71% 29% • Improvement in Cash Flow International Domestic • New contracts to be included in the next few months, worth c.€1.1
Slide 22: HAH (Equity method, Ferrovial stake 25.0%)
HAH (Equity method, FERROVIAL stake 25.0%) HAH Terminal 2 at Heathrow (The Queen’s 100% GBP million 1H2014 ∆% LfL Terminal) was opened to traffic on 4 June. Revenues 1,319 +7.2% Heathrow’s proposal for third runway EBITDA 710 +12.1% shortlisted for further analysis (Airports EBITDA % 53.8% +230 bps
Slide 23: Heathrow - Best ever passenger satisfaction
Heathrow - Best ever passenger satisfaction Departures % passengers rating Missed bags punctuality Heathrow “Excellent” or per 1,000 passengers “Very good” 40 81% 79% 63% 48% 19 2007 1H 2014 2007 1H 2014 2007 1H 2014 Over 79% of passengers surveyed rated their experience as Excellent or very good 23
Slide 24: 1H 2014 results
1H 2014 results Income Statement Revenues EUR MN JUN’14 JUN’13 Var% LfL% JUN´14 JUN´13 VAR.% LfL% Revenues 4,159 3,732 11.5% 12.5% Construction 1,804 1,859 -3.0 0.7 Airports 3 4 -21.3 -21.3 EBITDA 435 415 4.8% 3.5% Toll Roads 200 206 -3.0 -2.3 Services 2,125 1,655 28.4 25.7 EBITDA margin 10.5% 11.1%
Slide 25: Agenda
Agenda Group overview Looking Ahead Appendix 2014 – First Half results Introduction to 407ETR Toll road Managed Lanes Toll roads 2013 – Full year results 25 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 26: Would you buy this company...?
407 ETR Would you buy this company…? CAN million Shareholder’s Equity Net debt 1999: 1999 775 1,937 27x Debt/Ebitda 2013 -1,694 5,759 Accounting High losses debt 26 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 27: Ferrovial bought this company...: strong dividend flow
407 ETR Ferrovial bought this company… Cash Generation Valuation 407 ETR (1999-2013) (100%) € million € million Initial equity investment (62%) (326mn) 100% pay-back 10.485 Dividends (00 - 13) 1,051mn in first 10 years 20x 10% disposal 640mn NET CASH IN 1,691mn Valuation x20 525 1999 2014 Jun Maturi
Slide 28: 407 ETR location map
407 ETR Location Area of expansion 407 East extension High density population area Ring road of Toronto 108 km 407 28 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 29: All Electronic Roadside Tolling System
407 ETR All Electronic Roadside Tolling System Sophisticated electronic toll highway NO toll-booths, “closed ticket” tolling scheme (on/off ramps) NO stopping or slow-downs to pay ALL vehicles able to use highway Transponder not required. If valid transponder is not detected, digital images are take
Slide 30: ETR Location Greater Toronto Area
Fast 407 ETR Safe Reliable LOCATION HIGH Greater Toronto Area HOUSEHOLD INCOME 23% of Canada 46% higher population than Canada average SPEED NO REGULATORY Alternatives routes REVIEWS 40kph vs 100kph at During concession 407 life (99 years) TOLL RATE HIGH TRAFFIC FLEXIBILITY Alternatives routes Inclu
Slide 31: Financial overview ($CAD million)
407 ETR Financial overview ($CAD million) Revenues Capital Expenditure CAGR: 8.4% 801 97 90 88 72 77 74 70 420 49 84 years to maturity 38 2005 2013 2005 2006 2007 2008 2009 2010 2011 2012 2013 OPEX Dividends CAGR: 3.4% 136 680 600 104 100% pay-back in first 10 460 years 300 190 145 120 135 85 2005 2
Slide 32: ETR Recurrent presence in the bond market
407 ETR ETR Recurrent presence in the bond market (June’13) Extending maturities at historically low cost CAD 2,950mn issued since 2009 500 Maturity 400 400 3,58% 40 years 350 3,49% 39 300 300 300 200 200 200 30 30 2009 2009 2010 2010 2010 2010 2011 2012 2012 2013 Spread 1,58% 1,56% 1,60% Yearly avg
Slide 33: Agenda
Agenda Group overview Looking Ahead Appendix 2014 – First Half results Introduction to 407ETR Toll road Managed Lanes Toll roads 2013 – Full year results 33 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 34: Managed Lanes: Express Tollway within an Existing Highway
Managed Lanes New assets landmark “Express Tollway within an Existing Highway” Free Tolled Lanes Free Lanes Speed >50mph Lanes A solution to congestion on “existing urban corridors” by means of Active management of “newly added capacity” through tolling 34 E-mail: [email protected] – Tel: +34 91 586 2
Slide 35: Level of demand
Managed Lanes Level of demand NTE (untolled) 407ETR (tolled) Peak period Westbound Eastbound 00.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00 Time of the day Time of the day 35 E-mail: [email protected] – Te
Slide 36: Paying for predictability: travel time variability
Paying for predictability Travel time variability Travel Time Variability 70 60 50 40 Time (min) Time (min) 30 Free Flow Travel Mean 20 10 0 NB AM NB MD NB PM SB AM SB MD SB PM NB - North bound SB - South bound • Free flow time of 14 minutes at 6.00AM • The average travel time during all time period
Slide 37: Toll rates – tariff threshold
Toll rates – tariff treshold Tariff treshold Toll Rate Toll Rate Cap 0.75 c/mi Demand threshold 3300 pce/h 2-lane sections Speed Speed Threshold 50 mi/h Demand 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 Hour starting Analysis by segment and direction Freedom under the cap T
Slide 38: Dallas and Fort Worth Regional Map
Dallas and Fort Worth Regional Map Managed Lanes regional map LBJ NTE 1-2 NTE 3 38 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 39: Lyndon B Johnson
Managed Lanes Lyndon B Johnson Key characteristics DESCRIPTION: IH 635 (Dallas County), the most populous county in Texas LENGTH: 13 mile section of the IH 635 and IH 35E 108Km Electronic toll CONCESSION PERIOD: 52 years TARIFF POLICY: Open Road Tolling System (no toll booths) with a dynamic tolling
Slide 40: North Tarrant Express
Managed Lanes North Tarrant Express Key characteristics DESCRIPTION: Dallas-Fort Worth Metroplex, Major thoroughfares between Fort Worth and DFW Airport LENGTH: 13 mile section (IH 820 & SH 183 in Tarrant County) CONCESSION PERIOD: 52 years TARIFF POLICY: Open Road Tolling System (no toll booths) wi
Slide 41: North Tarrant Express 35W
Managed Lanes North Tarrant Express 35W Key characteristics DESCRIPTION: 2 “managed lanes” in each direction of the IH-35W, segments 3A and 3B (3B segment to be built by TxDOT) LENGTH: 10.2 mile section (segments 3A 6.2 miles and 3B 4 miles) CONCESSION PERIOD: 48 years TARIFF POLICY: Open Road Tolli
Slide 42: Managed Lanes Financial Overview
Managed Lanes Financial Overview Figures in US Dollars Total Investment: 2.05 bn 2.70 bn 1.36 bn Private Equity: 21% 427 m 25% 665 m 32% 430 m Cintra: 243 m (57%) 339 m (51%) 215 m (50%) Meridiam: 141 m (33%) 282 m (42%) 167 m (39%) DPFPS: 43 m (10%) 44 m (7%) 43 m (10%) APG: 4 m (1%) Total Debt: 52
Slide 43: Agenda
Agenda Group overview Looking Ahead Appendix 2014 – First Half results Introduction to 407ETR Toll road Managed Lanes Toll roads 2013 – Full year results 43 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 44: FY 2013 results
FY 2013 results Income Statement Revenues EUR MN DEC’13 DEC’12 Var% L-f-L% DEC´13 DEC´12 VAR.% LfL% Construction 4,063.6 4,325.6 -6.1 -4.5 Revenues 8,166 7,630 7.0% 9.0% Toll Roads 429.0 381.4 12.5 13.0 Services 3,656.3 2,895.0 26.3 29.3 EBITDA 934 927 0.8% 4.8% Others 17.6 28.3 n.s. n.s. Total 8,16
Slide 45: Cash Flow generation 2013
Cash Flow generation 2013 Ex-Infrastructures projects Operating Cash Flow RoW Construction+Services 32% 21% 22% 14% 11% Dividends RoW From infra projects 45% 48% 7% Investment flow RoW 20% 66% 12% 45 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 46: EBITDA: Diversified portfolio
Diversified portfolio Ex – Infrastructure Projects Infrastructure Projects Services Construction Toll Roads Airports Non Capital Intensive Capital Intensive PROFIT GENERATION LONG DURATION CASH GENERATION LONG TERM VALUE Fully consolidated Method Proportional (1) €934Mn EBITDA €1,681Mn FY´13 30% 20%
Slide 47: Ferrovial Investor Relations
ferrovial INVESTOR RELATIONS DEPARTMENT - C/ Príncipe de Vergara, 135 - 28002 MADRID (Spain) T: +34 91 586 27 30 F: +34 91 586 28 69 e-mail: [email protected] website: www.ferrovial.com